Schwab accepts 84 million shares in modified Dutch auction

By Lisa Kerner

Charlotte, N.C., Aug. 6 - The Charles Schwab Corp. accepted for purchase 84 million shares of its common stock priced at $20.50 per share for a total of $1.7 billion in its modified Dutch auction tender offer ended July 31.

The final proration factor for the offer is 90.5%, a company news release stated.

Schwab said the depositary will promptly pay for the shares accepted for purchase and will return the shares it does not accept for purchase to the tendering stockholders at the company's expense.

The company agreed to purchase 18 million shares priced at $20.50 each for a total of $369 million from chairman and chief executive officer Charles R. Schwab and certain other stockholders.

In total, Schwab will have purchased 102 million shares, or about 8% of the company's outstanding shares, for $2.1 billion. There is $446 million remaining under an existing board stock repurchase authorization.

The San Francisco financial services company announced its planned repurchase on July 2. D.F. King & Co., Inc. (800 659-6590) was the information agent.

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